CHINA ORDERS TRANSMISSION COMPANIES TO CONNECT RENEWABLE ENERGY
China ordered power transmission companies to ensure that there is grid connectivity for all renewable power generation sources. The National Energy Administration (NEA) explained that the grid companies are now required to plug in all renewable power sources that are in compliance with technical standards. China is the biggest user of wind and solar energy in the world, but so far a huge amount of renewable power has not been included in the national grid because transmission capabilities are lagging generating capacity by three to five years. To make integration possible, the state grid is planning to build new ultra-high voltage lines, which will improve the connection between northern and western regions, big energy producers, and the main industrial areas in eastern China. The integration of renewable power in the grid will require grid companies to buy a certain amount of solar and wind energy, but the amount required has yet to be set. Mandatory contracting means that renewable power companies will still be compensated even if they are squeezed out of the market by other suppliers. For the full story, see http://uk.reuters.com/article/us-china-power-renewables-idUKKCN0WU0RF.